Fewer US interest rate cuts expected after job gains surprise

Due to the stronger-than-expected job growth and potential for fewer interest rate cuts, companies sensitive to borrowing costs could face challenges. However, sectors benefiting from labor market strength, such as consumer discretionary, may see positive momentum. Nonetheless, as interest rates remain high for an extended period, opportunities in financial institutions might arise as they benefit from higher lending rates.

With global implications and higher borrowing costs potentially affecting many markets, consider keeping a cautious approach towards bonds, particularly UK gilts, which could become more stressed. This suggests a negative forecast for bond investments amid rising yields.